Challenges in Building Transmission in California

Power Association of Northern California

P.J. Martinez

VP, Engineering

Pacific Gas & Electric Company

September 8, 2009

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Pacific Gas and Electric Company - Overview

Headquarters LocationSan Francisco, CA

Service Area70,000 square miles in northern and central California

Service Area Population15 million people (or about 1 of every 20 Americans)

Distribution Customer Accounts5.1 million electric, 4.3 million gas

EmployeesApproximately 20,000

System 159,364 miles of electric transmission and distribution lines 48,198 miles of natural gas T&D pipelines 6,900 megawatts of generation, including

Diablo Canyon nuclear power plant,Helms pumped storage plant, and one of the largest hydroelectric systems in the country

Challenges and Drivers

Challenges to Building Transmission– Permitting and Siting

– Multiple Planning Processes

– Construction

Main Drivers for Transmission– Reliability

– Renewable Portfolio Standards

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Reliability

PG&E continues to strengthen and modernize its electric transmission grid.- Two-fold increase since

2004

- Replace aging Infrastructure

- Improve service reliability

- Automate operation, SCADA and improve system protection

- Modernize design and configurations

- Connect new generation and accommodate aging generation retirement

- Meet demand increase

PG&E Reliability Projects

0

100

200

300

400

500

600

700

800

2004 2005 2006 2007 2008 2009 2010

Year

$ M

illio

n

PG&E Capital Spend on Reliability Projects

Fo

reca

sted

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Renewable Portfolio Standard- CA State Impacts

-Increased Import Capability

-Lower System Losses

-Access to new renewable resources

-Improved Reliability

-CA State Challenges

-Concentration of SoCal resources

-Intermittency Issues

-Resource Planning – LGIP

-Transmission permitting

-Regional Challenges

-Increase of out of state transfers

-Need for broader coordinated planning process

-Treatment of economics, reliability, operational benefits

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Large Generator Interconnection Process (LGIP)

Transition to improved interconnection process is ongoing Results of Phase 1 of LGIP

– Assessed needed network upgrades

– 108 projects evaluated totaling 39,000 MW

– Billion in system upgrades

Key Issues– Number of projects in the process

– Security postings – CAISO stakeholders working on improvements

– Recommendations to CAISO Board on Sept. 11

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Process Challenges

Industry ability to plan, approve, and build necessary transmission.

Multiple Jurisdictions and Processes– CAISO

– MUNIs

– CPUC Permits

– CEC Permits

– WECC TEPPC

– FERC

Meeting Challenges by– Understand limitations of

existing process– Streamline process to

minimize duplication– Objective on results that

facilitate project progress

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Oregon Malin

Captain Jack

California

Gates

Diablo Midway

Tracy

Vincent

Tesla

Moss Landing Los Banos

Vaca Dixon

Round Mt

Metcalf

Olinda

Table Mt

Gregg

Bellota

PG&E collaborating on planning to develop a statewide transmission plan. Near and long term efforts include:– RETI

– CTPG

– CAISO

– TEPPC

PG&E proactively focused on transmission line projects to meet renewables targets.– Canada – Northern California

– C3ETP

– Carrizo Plains

– SCE projects in SoCal

PG&E Plan & Vision

To British Columbia

Canada - NorCal

C3ETP

Carrizo Plains8

Conclusion

PG&E is optimistic that together with the State and all stakeholders California will both:

- Build the necessary transmission for the States future and

- Develop an effective planning process

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